Ningbo Shanshan (600884) Q4 2024 earnings summary

Executive summary

• Operating revenue for 2024 was RMB 18.68 billion, down 2.05% year-over-year; net loss attributable to shareholders was RMB -367 million, compared to a profit of RMB 765 million in 2023.

• Both anode materials and polarizer businesses achieved sales volume growth, but profitability was impacted by losses from equity investments, asset impairments, and increased financial expenses.

• No cash dividend, bonus shares, or capital reserve conversion proposed for 2024 due to the overall loss.

Financial highlights

• Operating revenue: RMB 18.68 billion, down 2.05% year-over-year.

• Net profit attributable to shareholders: RMB -367 million (2023: RMB 765 million).

• Net profit after non-recurring items: RMB -768 million.

• Total assets: RMB 46.21 billion, down 4.68% from prior year.

• Basic and diluted EPS: RMB -0.17 (2023: RMB 0.35).

• Gross margin for anode materials increased by 6.68 percentage points; polarizer gross margin decreased by 13 percentage points.

Outlook and guidance

• Anode materials market expected to grow with global lithium-ion battery shipments projected to reach 1,899.3 GWh in 2025.

• Company to focus on cost reduction, R&D, and capacity ramp-up in both anode and polarizer businesses.

• Polarizer demand expected to rise, especially in OLED and automotive segments, with China’s market share projected to increase.